Hedge Funds Aren’t Crazy About MongoDB, Inc. (MDB) Anymore

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of March 31st, a week after the market trough. In this article we look at what those investors think of MongoDB, Inc. (NASDAQ:MDB).

MongoDB, Inc. (NASDAQ:MDB) has experienced a decrease in enthusiasm from smart money in recent months. Our calculations also showed that MDB isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings and see the video for a quick look at the top 5 stocks).

Video: Watch our video about the top 5 most popular hedge fund stocks.

Today there are tons of metrics investors can use to assess stocks. A duo of the less known metrics are hedge fund and insider trading interest. We have shown that, historically, those who follow the best picks of the elite money managers can outperform the S&P 500 by a very impressive amount (see the details here).

Brad Gerstner Altimeter Capital

Brad Gerstner of Altimeter Capital

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, 2020’s unprecedented market conditions provide us with the highest number of trading opportunities in a decade. So we are checking out trades like this oneWe interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. With all of this in mind we’re going to take a gander at the key hedge fund action regarding MongoDB, Inc. (NASDAQ:MDB).

How have hedgies been trading MongoDB, Inc. (NASDAQ:MDB)?

Heading into the second quarter of 2020, a total of 30 of the hedge funds tracked by Insider Monkey were long this stock, a change of -6% from the fourth quarter of 2019. Below, you can check out the change in hedge fund sentiment towards MDB over the last 18 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

More specifically, Tiger Global Management LLC was the largest shareholder of MongoDB, Inc. (NASDAQ:MDB), with a stake worth $261 million reported as of the end of September. Trailing Tiger Global Management LLC was Whale Rock Capital Management, which amassed a stake valued at $161.3 million. SQN Investors, Citadel Investment Group, and Altimeter Capital Management were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position SQN Investors allocated the biggest weight to MongoDB, Inc. (NASDAQ:MDB), around 11.51% of its 13F portfolio. Cota Capital is also relatively very bullish on the stock, setting aside 8.12 percent of its 13F equity portfolio to MDB.

Because MongoDB, Inc. (NASDAQ:MDB) has faced a decline in interest from hedge fund managers, we can see that there is a sect of hedgies who sold off their entire stakes last quarter. It’s worth mentioning that Steve Cohen’s Point72 Asset Management cut the largest position of all the hedgies monitored by Insider Monkey, comprising an estimated $56.9 million in stock. Bernard Selz’s fund, Selz Capital, also cut its stock, about $6.2 million worth. These moves are important to note, as aggregate hedge fund interest was cut by 2 funds last quarter.

Let’s go over hedge fund activity in other stocks similar to MongoDB, Inc. (NASDAQ:MDB). We will take a look at United Airlines Holdings Inc (NASDAQ:UAL), VICI Properties Inc. (NYSE:VICI), SVB Financial Group (NASDAQ:SIVB), and Vistra Energy Corp. (NYSE:VST). This group of stocks’ market values are closest to MDB’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
UAL 41 1908897 -21
VICI 36 921752 -1
SIVB 30 383904 -5
VST 39 1440172 -10
Average 36.5 1163681 -9.25

View table here if you experience formatting issues.

As you can see these stocks had an average of 36.5 hedge funds with bullish positions and the average amount invested in these stocks was $1164 million. That figure was $770 million in MDB’s case. United Airlines Holdings Inc (NASDAQ:UAL) is the most popular stock in this table. On the other hand SVB Financial Group (NASDAQ:SIVB) is the least popular one with only 30 bullish hedge fund positions. Compared to these stocks MongoDB, Inc. (NASDAQ:MDB) is even less popular than SIVB. Hedge funds clearly dropped the ball on MDB as the stock delivered strong returns, though hedge funds’ consensus picks still generated respectable returns. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 8.3% in 2020 through the end of May and still beat the market by 13.2 percentage points. A small number of hedge funds were also right about betting on MDB as the stock returned 70% so far in the second quarter and outperformed the market by an even larger margin.

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Disclosure: None. This article was originally published at Insider Monkey.